Nvidia, the chipmaker at the center of the artificial intelligence boom, gained in late trading Wednesday after a bullish sales forecast showed spending on AI computing remains strong.
The company said second-quarter revenue will be about $28 billion, above the $26.8 billion forecast by analysts. Results in the first fiscal quarter ended April 28 were also better than expected, thanks to growth in the data center division.
The big question in the earnings report was whether Nvidia’s latest numbers could justify the dizzying rise in stock prices. Shares were up 92% this year through Wednesday’s close, fueled by investors’ hopes that the company would continue to subvert expectations.
